The electricity pricing regulator in NSW has recently revealed that utilities are making windfall profits from the Solar Bonus Scheme. As the NSW government retrospectively robs one third of solar system owners’ promised entitlements, it is clear that electricity retailers are charging back to the customer at rates up to 40c/kWh of electricity that was freely generated from the sun.

The Independent Pricing and Regulatory Tribunal (IPART) recognise that utilities are making windfall profits from the Solar Bonus Scheme. “The Solar Bonus Scheme is currently structured so that [electricity] retailers receive a financial benefit,” IPART says. The organisation goes on to suggest that requiring the electricity retailers to pay back some of this financial benefit would reduce the “amount of funds … foregone by taxpayers”. This financial benefit arises because taxpayers fund the payments made to solar power generators, which means the solar electricity itself is provided to the retailers for free. The vast majority of the electrons generated by the solar power system then flow back into the house, only after electricity retailers record them, and charge the customer up to 40c/kWh.

The Australian PV Association (APVA) has revealed that IPART’s indented electricity price rises would deliver a further windfall profit to the utilities. IPART’s draft decision would allow electricity retailers to pass-on the cost of complying with the Small-scale Renewable Energy Scheme at a rate of $40 per certificate. However, Small-scale Technology Certificates can currently be purchased at $25 – a price low enough to enable vast windfall profits to accumulate in retailers' pockets.

In its presentation to the Solar Summit, the NSW Office of Resources and Energy acknowledged utilities’ windfall profits and suggested that electricity retailers contribute to the costs of the Solar Bonus Scheme. Instead, the NSW government is attempting to short-change pensioners, baby boomers, and low-income households, while continuing the practise of serving up profits to electricity retailers at taxpayers’ and consumers’ expense.

Analysis by the University of NSW showed that most owners of solar power systems had household income of less than $70,000, and that the majority of recipients were over 60 years of age. Over 120,000 NSW households now own a solar power system, most of whom made an investment decision upon the basis of seven years of legislated entitlement of 60c/kWh for generated solar electricity. The government now seeks to cut by 40c/kWh entitlements of those most impacted by electricity price rises, while allowing electricity retailers to make windfall profits from taxpayer and electricity consumer alike.

Unfortunately, the flow-on effects of this action don’t stop there. By reneging on legislation, the government will undermine the public’s confidence in making any future purchase of a solar power system. This sets a dangerous precedent that will reverberate nationwide, and seriously threaten the ability of the solar power industry to home-deliver clean energy and protection from electricity price hikes. It also puts thousands of jobs at stake.

More broadly, this action undermines trust in governments nationally, especially as the lip service they pay the environment is underdone, and then undone. As Nigel Morris of Solar Business Services ponders, “Is every piece of legislation able to be thrown out on a whim? Will I potentially have to give my First Home Owners Grant back?”

It is no longer ironic that the NSW government threatens the entire solar power industry over a $41 annual impact upon electricity bills when it ignores windfall profits to utilities and subsidises the coal industry by $1 billion each year. It’s an outrage.

The figures above show the uptake of solar power systems in NSW by age group and household income level. They are taken from Bruce, A. W. (2009). Who Buys PV Systems? A survey of NSW PV Rebate recipients. Proceedings of Solar 09. Townsville: Australian and New Zealand Solar Energy Society.

The figure above relates postcode-level installation data provided in mid 2010 to the Solar Bonus Scheme Statutory Review, correlated against individual taxable income levels at the 2006 census. It demonstrates that uptake has predominantly been in low-income areas.

Energy Widget (Renew Economy)

SunWiz News

How Can I Target The Best Places To Sell Solar?
PVsell now includes (free with all subscriptions) brilliant market intelligence from SunWiz that can help you target the best places to sell solar, use social evidence to help you convert sales, and compare your success to the broader market. Known as Solar Hot Spots, you’ll find this interactive market intelligence tool embedded within PVsell.
This information is based on detailed analysis of Clean Energy Regulator data, which has been analysed and is displayed in various interactive dashboards that allow you great insight into the data and help you apply the market intelligence to your business. Note that the most recent data is based off incomplete STC registration which has been projected based off historical ‘lag’ factors and which takes a couple of months to ‘true up’ to the highest degree of accuracy. Hence the recent 2 months’ volumes are less accurate than earlier data.
Usefulness:
Solar companies spend a lot of time and money reaching customers. Concentrating your efforts on where they’re most likely to bear fruit can improve your business profitability.
“Keeping up with the Jones’” is perhaps the most common reason people buy solar (whether or not they realise it). Fear of being left behind by their neighbours can increase the likelihood of sale.
Many PV retailers operate in the dark, and aren’t aware that they’re falling behind the market. Our national and state snapshots also let you celebrate your success as you beat the market.

Part of our series “What is the best strategy to maximise the Return on Investment for your battery?”
In other articles we’ve examined the best strategies for maximising Return on Investment in your battery. We’ve seen:
You can’t make enough money from a battery alone to justify its cost – you need to couple it with a PV system which does most of the heavy lifting in terms of ROI.
Smaller is better when it comes to ROI – as the battery acts to drag down the ROI of a PV system, so a smaller battery drags down the ROI less
In order to maximise your ROI its best to discharge during Peak and Shoulder periods, though of course the answer also depends on the price of peak and shoulder electricity in your area.
Discharging your battery during off-peak periods to ensure it is 100% available to soak up excess solar energy sounds like a good idea on face value (better to sell at 13c/kWh than earning only 6c/kWh for your excess solar), but you’re probably prematurely aging your batteries for almost negligible extra revenue.
We’ve seen that arbitrage can generate a reasonable amount of revenue on its own, but not enough to justify the batteries in the absence of PV. But what about doubling the batteries’ utilisation by pre-charging from off-peak electricity to cover early morning loads then re-charging from the sun to cover evening loads? Couldn’t sneaking in an extra cycle in the morning act to increase my revenue and accelerate my payback?

Part of our series “What is the best strategy to maximise the Return on Investment for your battery?”
In which we also answer the question “Should I Discharge during peak only, or peak and shoulder“ and “Is it worth discharging during off-peak periods in order to maximise solar soak-up?”
Now if you’ve taken the early adopter step of adding battery storage to your PV system, you might be wondering how to make the most of your battery in minimising your electricity bill. In other articles we’ve examined the best strategies for maximising Return on Investment in your battery. We’ve seen:
You can’t make enough money from a battery alone to justify its cost – you need to couple it with a PV system which does most of the heavy lifting in terms of ROI.
Smaller is better when it comes to ROI – as the battery acts to drag down the ROI of a PV system, so a smaller battery drags down the ROI less
One common idea put forward as a way of improving battery ROI is to double the amount of work the battery does each day, by pre-charging it from off-peak grid power to service your morning loads, before charging it again (this time from excess solar energy) so it can service your evening loads. By working it twice as hard, the theory is you will generate extra revenue (in the form of bill reduction) each year, so the battery should pay for itself sooner. But how does the theory stack up in reality? Let’s use PVsell to find out.

Is it worthwhile charging a battery from the grid at off-grid prices?
Part of our series “What is the best strategy to maximise the Return on Investment for your battery?”
In this article we demonstrate that batteries can’t pay for themselves without being coupled with solar power.
Have we discovered a perpetual profit machine hidden within the electricity network? Those greedy electricity retailers charge a fortune for power during peak periods (right when you’re using most energy), and much less during off-peak periods (when you’re asleep). What if you could charge a battery overnight from cheap off-peak electricity, and use the battery to supply your needs during expensive peak periods? Making money during your sleep, night after night, Genius! Right?

In case you hadn’t noticed, the return on investment of batteries isn’t flash. Thankfully there’s plenty of early adopters out there who will buy batteries regardless of ROI, because early adopters like the technology and the independence it offers. The way to sell batteries to them is to target sales message to the reasons they like batteries, which include:
Using their excess solar energy at night rather than exporting it to the grid for a pittance.
Avoiding ridiculously high peak electricity prices by charging their battery at low off-peak prices (or from the sun) and discharging their battery during peak price periods.
Reducing their dependence on the grid
Having protection against blackouts
Going completely off grid.
So if you’re going to successfully sell to early adopters, you need to be able to demonstrate that your battery will do each of these. Because early adopters like facts and figures you’re also going to need to quantify how much your battery will do each of these.

Linkedin Recommendations

Nigel Morris

Director/Principal Consultant at SolarBusinessServices

Through his business Sunwiz, Warwick has collaborated with me on several projects. He is a good guy and knows his subject well. His analytical and IT skills are excellent and he has demonstrated both strong integrity and a passion for renewables.

Nigel Morris

Director/Principal Consultant at SolarBusinessServices

Through his business Sunwiz, Warwick has collaborated with me on several projects. He is a good guy and knows his subject well. His analytical and IT skills are excellent and he has demonstrated both strong integrity and a passion for renewables.

Stefan Jarnason

Managing Director at Solar Analytics

Warwick has an impressive knack for understanding complex solar market information and distilling it onto actionable information. He has a unique grasp of both highly detailed technical details and overall market strategy.

Stefan Jarnason

Managing Director at Solar Analytics

Warwick has an impressive knack for understanding complex solar market information and distilling it onto actionable information. He has a unique grasp of both highly detailed technical details and overall market strategy.

Gonzalo Muslera

Director, PIVOTAL Solar Solutions

The solar industry is dynamic and Warwick's solar expertise and knowledge of the solar industry was important to our company in refining our strategic approach. The insights gained in the meetings and reports were highly valuable. They substantiated the several initiatives implemented since then. He is great to deal with, and I look forward to doing more business with him in the future. Thank you Warwick.

Gonzalo Muslera

Director, PIVOTAL Solar Solutions

The solar industry is dynamic and Warwick's solar expertise and knowledge of the solar industry was important to our company in refining our strategic approach. The insights gained in the meetings and reports were highly valuable. They substantiated the several initiatives implemented since then. He is great to deal with, and I look forward to doing more business with him in the future. Thank you Warwick.

John Grimes

Chief Executive Officer (Australian Solar Council)

Understanding the solar market is all about understanding data. Warwick is an expert at using data to make the picture clearer. If you are looking for solar clarity, Warwick is your guy.

John Grimes

Chief Executive Officer (Australian Solar Council)

Understanding the solar market is all about understanding data. Warwick is an expert at using data to make the picture clearer. If you are looking for solar clarity, Warwick is your guy.

Peter Bulanyi

Managing Director of Si Clean Energy

I have known Warwick for many years within the PV Industry. Warwick's relentless pursuit of excellence in PV engineering, statistical analysis and governance places him as one of the leading PV professionals in Australia.

Peter Bulanyi

Managing Director of Si Clean Energy

I have known Warwick for many years within the PV Industry. Warwick's relentless pursuit of excellence in PV engineering, statistical analysis and governance places him as one of the leading PV professionals in Australia.

Tristan Edis

Editor - Climate Spectator at News Corp

Warwick is one of the foremost experts on the Australian Solar PV market full stop. My job is to provide media commentary on the Australian renewable energy sector and the Australian energy market more generally and I regularly call upon him to keep me informed on key aspects of the Australian solar market using the most up to date data available. If you want to know about how the Australian solar market is evolving I'd put him up there with less than a handful of other individuals in the country.

Tristan Edis

Editor - Climate Spectator at News Corp

Warwick is one of the foremost experts on the Australian Solar PV market full stop. My job is to provide media commentary on the Australian renewable energy sector and the Australian energy market more generally and I regularly call upon him to keep me informed on key aspects of the Australian solar market using the most up to date data available. If you want to know about how the Australian solar market is evolving I'd put him up there with less than a handful of other individuals in the country.

Dewayne Montey

Import & E-commerce Consultant - Transforming Lives & Businesses

I have known and worked with Warwick on several occasions and found him to be a breath of fresh air for the solar industry. He is passionate and very knowledgeable. He provides excellent market research and understands industry trends like no other. He is innovative and a big thinker capable of helping any renewable related business navigate their way to success.

Dewayne Montey

Import & E-commerce Consultant - Transforming Lives & Businesses

I have known and worked with Warwick on several occasions and found him to be a breath of fresh air for the solar industry. He is passionate and very knowledgeable. He provides excellent market research and understands industry trends like no other. He is innovative and a big thinker capable of helping any renewable related business navigate their way to success.

Jason Alford

National Technology Manager at the Ray White Group

Warwick has a broad set of consulting skills specifically tailored to the Solar PV market. His industry reports, technical ability, solution design capabilities and senior level network within both the political and commercial sectors sets Sunwiz apart. Once engaged, Warwick performs to high standards at all times and the outcomes provided are of a solid commercial nature.

Jason Alford

National Technology Manager at the Ray White Group

Warwick has a broad set of consulting skills specifically tailored to the Solar PV market. His industry reports, technical ability, solution design capabilities and senior level network within both the political and commercial sectors sets Sunwiz apart. Once engaged, Warwick performs to high standards at all times and the outcomes provided are of a solid commercial nature.

Glen Currie

CEO at Flurosol and Director Communications Management Company

Warwick focuses on delivering well grounded advice to the solar industry.He is a sought after speaker at conferences as well.

Glen Currie

CEO at Flurosol and Director Communications Management Company

Warwick focuses on delivering well grounded advice to the solar industry.He is a sought after speaker at conferences as well.

Andrew Hall

Entrepreneur | Investor | Advisor

My experience with SunWiz dates back to 2009 where I asked Warwick to consult to a then little start up: Bright Generation. In my opinion Warwick/ Sunwiz has been a key player in Australia's solar proliferation through providing insightful and timely, technical and commercial services to many domestic and international corporates. Where would we all be without Sunwiz's weekly market insights!

Andrew Hall

Entrepreneur | Investor | Advisor

My experience with SunWiz dates back to 2009 where I asked Warwick to consult to a then little start up: Bright Generation. In my opinion Warwick/ Sunwiz has been a key player in Australia's solar proliferation through providing insightful and timely, technical and commercial services to many domestic and international corporates. Where would we all be without Sunwiz's weekly market insights!

Terry Davis

Managing Director at Excel Solar Pty Ltd

Warwick is a very determined and knowledge young man with a passion for renewables. In particular solar PV systems. Warwick's technical knowledge is tempered by his business savvy and experience. He is always there to offer advice and guidance while learning as much as he can about the industry.

Terry Davis

Managing Director at Excel Solar Pty Ltd

Warwick is a very determined and knowledge young man with a passion for renewables. In particular solar PV systems. Warwick's technical knowledge is tempered by his business savvy and experience. He is always there to offer advice and guidance while learning as much as he can about the industry.